TikTok plays up its auto power with new ad channels

TikTok’s future in the U.S. may be up in the air, but that’s not stopping the platform from pushing deeper into the auto industry.

The details: The new offerings—called TikTok Automotive Ads—are aimed at leveraging the social media platform’s massive audience reach to help auto brands, marketplaces, and dealers reach car buyers in a more targeted way. 

• The program includes two types of ads—Inventory Ads that promote individual VINs (focused on serving dealers and marketplaces) and Model Ads that promote vehicle models, trims, and offers (focused on serving OEMs). 

• To simplify the process, TikTok Automotive Ads is currently only offered in two creative formats – a video and product car or a multi-link carousel that can be created directly from a user’s catalog.   

According to TikTok, almost one in three users of the platform are in the market for a new vehicle. The platform also contends that auto advertisers that tested Inventory Ads indicated that it performed better than other shopping platforms, including a 41% lower cost per acquisition (CPA) and 51% lower last-click CPP compared to other TikTok shopping formats.  

Between the Lines: The launch of TikTok Automotive Ads comes at an interesting time for the social media platform, as its parent company, ByteDance, works to finagle a deal with the Trump administration to advert TikTok being permanently banned in the US.

• On January 20, President Trump singed an executive order delaying the ban of TikTok for 75 days, indicating that ByteDance will need to do 50/50 ownership deal with a US-based company to continue operating TikTok in the US.

• The growing list of investors interested in buying TikTok’s US operations ranges from investor and Shark Tank host, Kevin O’Leary to a group of investors that includes YouTube creator, Jimmy Donaldson (MrBeast).   

• On Wednesday, news broke that TikTok received a $47.45 billion offer from U.S. entrepreneur, Reid Rasner, for “a controlling stake” in TikTok’s assets, operations, and proprietary algorithm.  

Why it matters: TikTok remains a massive opportunity for automotive industry stakeholders. If it stays in the U.S., its influence on car buying will likely continue accelerating at a fast clip.

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